2017-07-12

M2 Slows Slightly in June, TSF Jumps

Headlines focused on the 12-month M2 growth rate of 9.4 percent, made possible by the June increase of 1.87 percent being below the June 2016 increase of 1.97 percent. The 3-month annualized M2 growth of 8.2 percent looks much slower, well below the year-ago 12.7 percent.

The increase in M2 wasn't offset by a rise in reserves. China's FX reserves account for 12.7 percent of M2.

Total social financing hit a new rolling 12-month high of 19.1 trillion yuan.